Answer to Question #58478 in Microeconomics for Nhi

2016-03-12T03:14:08-0500

Question #58478

The table below represents the total product information for a company that produces baseball hats. The number of machines used in this production process is three; the number of machines cannot be easily modified, since they are leased according to a 12-month contract.

Expert's answer

2016-03-18T15:48:05-0400

If the number of machines used in this production process is 3 and this number of machines cannot be easily modified, since they are leased according to a 12-month contract, then the number of machines used is the fixed input, which can't be changed in the short-run. And labor is variable input in this case.